Morning Call

September 17, 2021

AMX to divest its Panama subsidiary for US$200 million to Liberty Latin America. The sale, still pending regulatory approval, is expected to be completed in 1H22. The transaction does not include AMX’s towers in Panama since they will be part of the upcoming spin-off. According to Liberty Latin America, AMX’s Panama business generated US$157 million in revenues by YE20 (7.0% of AMX’s Central American segment, or 0.3% on a consolidated basis). At the end of 2Q21, the business had 760 thousand wireless RGUs (4.8% of AMX’s in the Central America segment, or 0.3% in total). We see the event as immaterial given that the transaction value accounts for 0.7% of AMX’s consolidated net debt at 2Q21. Our take is that this was an opportunistic sale in a crowded market where AMX had no leadership. 


According to Bloomberg sources, GMEXICO’s SCCO and Canada’s Hudbay Minerals are among the final bidders to acquire Matsa, a Spanish copper miner equally owned by Trafigura Group and Abu Dhabi fund Mubadala Investment. Sources indicate the deal could materialize for roughly US$2 billion.


  • Today at market close, the rebalancing of the S&P BMV IPC Index will take place, with VOLAR rejoining the index.


  • Kansas City Southern (KSU) and Canadian Pacific (CP) have signed a deal to merge both companies, where the former will receive US$300 in cash and CP shares per every KSU share outstanding. The merger must be green-lit by the US regulator but a voting trust has already been approved.


  • KOF signed a distribution agreement with Estrella Galicia in Brazil. 


  • GAP will distribute a dividend of P$7.8 per share (5.0% annualized dividend yield) on September 28, as approved at an extraordinary shareholders’ meeting on September 14.


  • Volvo Cars is planning an IPO on the Stockholm Stock Exchange in the coming weeks. It could be one of the biggest IPOs in Europe this year, with a valuation in the US$20-30 billion ballpark, according to news outlets.